U.S. home prices post biggest gain in several years
There’s more evidence that the housing market is in the midst of a slow, but sustained recovery. New data shows that prices in the Twin Cities and across the country are being lifted by strong sales and fewer foreclosures. Data from CoreLogic, which tracks repeat sales of the same properties,
During the second quarter home prices across the country prices were up 2.5 percent from a year ago and 6 percent from the previous quarter, according to an analysis of CoreLogic data by the Wall Street Journal. The quarterly increase was the biggest since 2005.
During June alone the CoreLogic Home Price Index (HPI) nationwide was up 2.5 percent, the fourth consecutive year-over-year increase. In the Twin Cities prices were up 3 percent compared with last year and 1.2 percent from May.
A new second-quarter report from Freddie Mac shows that prices were up 4.8 percent compared with the previous month, the biggest quarter-to-quarter increase in eight years.
The report mirrors data from the Minneapolis Area Association of Realtors, which JustListed reported early last month. The group’s home price index, which factors in seasonal variations and changes in the size and prices of homes that are selling, was up 5.1 percent. In recent months there’s been a signficant shift in the mix of homes that are selling. Specifically, there have been fewer sales at the bottom of the price spectrum, causing a stastical upward shift in the median price of all sales that have closed.
In the Twin Cities during June the share of all sales that were distressed sales fell to the lowest level since 2008. And the most recent data about foreclosure activity in the state shows that while foreclosure sales continue to happen at extremely high rates in most parts of the state, the number of foreclosure notices that get sent to homeowners has been steadily declining.
CoreLogic predicts that during July its HPI will rise 2 percent.
Readers, tell us if the data matches what’s happening in your neighborhood, or with your own home sale or purchase.
Jim Buchta, Star Tribune